Corporate Finance Exam Mba Essay

3205 Words Nov 23rd, 2011 13 Pages
User | Long Yang | Submitted | 9/8/11 6:45 PM | Name | Midterm Exam I | Status | Completed | Score | 69 out of 75 points | Time Elapsed | 3 hours, 28 minutes, and 53 seconds out of 3 hours and 30 minutes allowed. | Instructions | Good luck! | | * Question 1
1 out of 1 points | | | Both New York Stock Exchange and NASDAQ are examples of secondary markets.Answer | | | | | Selected Answer: | True | Correct Answer: | True | | | | | * Question 2
1 out of 1 points | | | Financial manger can create value for a firm by creating more cash flow for it than it uses. To do so, they should make investment decisions so that the firm may buy assets that generate more cash than they cost.Answer | |
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stors after the company has made all the investments in fixed assets and working capital necessary to sustain ongoing operations.Answer | | | | | Selected Answer: | net cash flow | Correct Answer: | cash flow from assets | | | | | * Question 21
0 out of 1 points | | | Which one of the following is the formula for the cash flow to creditors?Answer | | | | | Selected Answer: | -interest paid - retirement of debt + proceeds from new debt | Correct Answer: | interest paid + retirement of debt - proceeds from new debt | | | | | * Question 22
1 out of 1 points | | | The costs of resolving the conflict of interest between managers and shareholders are called ______________ costs.Answer | | | | | Selected Answer: | agency | Correct Answer: | agency | | | | | * Question 23
1 out of 1 points | | | ________ are the markets in which corporations raise new capital.Answer | | | | | Selected Answer: | Primary markets | Correct Answer: | Primary markets | | | | | * Question 24
1 out of 1 points | | | ________ are the markets for short-term debts.Answer | | | | | Selected Answer: | Money markets | Correct Answer: | Money markets | | | | | * Question 25
1 out of 1 points | | | What is the effect on net working capital if the corporation decides to increase its investment in inventory and pay for it with cash?Answer | | | | |

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